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Basic Question 8 of 9

According to the one-year corporate transition matrix (exhibit 7 of the reading), the higher the credit rating, the more likely the issuer is to keep that credit rating. True or false?

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I used your notes and passed ... highly recommended!
Lauren

Lauren

Learning Outcome Statements

explain credit scores and credit ratings;

calculate the expected return on a bond given transition in its credit rating;

CFA® 2025 Level II Curriculum, Volume 4, Module 29.